Legal Case Summary

Case Details
Case ID 0b22875e-c762-485d-b22d-3eeb1ac872b3
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Case Number CIVIL REVISION PETITION NO. 257-B OF 1933
Decision Date Feb 14, 1934
Hearing Date
Decision The court held that the lower court's order requiring the defendants to further answer interrogatories was wrong. The clear intention of section 54 is to encourage an assessee to make a full and true disclosure of all relevant facts within his knowledge, knowing that any statement made will not subsequently be used against him. The court emphasized that such statements are confidential, and an assessee can object to answering interrogatories based on privilege. The application for revision was allowed, and the lower court's order was set aside to prevent injustice.
Summary In the case of Civil Revision Petition No. 257-B of 1933, the court examined the application of Section 280 of the Income-tax Act, 1961, which corresponds to Section 54 of the Indian Income-tax Act, 1922. The case revolved around the admissibility of certain statements made in income-tax proceedings, which were deemed confidential. The plaintiffs sought to file these statements as evidence, but the lower court ruled them inadmissible. The plaintiffs later attempted to deliver interrogatories to ascertain statements made by the defendants before the Income-tax Officer, which were met with objections. The court found that the intention of the law is to promote full disclosure by assessees while protecting their rights to confidentiality. The court noted that the lower court's order was materially irregular and intervened to prevent injustice, ultimately allowing the revision petition and setting aside the lower court's decision. This case highlights the balance between transparency in tax matters and the protection of privileged communication.
Court A.J.C.
Entities Involved Not available
Judges Subhedar, Pollock, A.J.C.
Lawyers M.R. Bobde, J.R. Chandorkar
Petitioners Shama Rao
Respondents Motiram
Citations 1934 SLD 15, (1934) 2 ITR 436
Other Citations Not available
Laws Involved Income-tax Act, 1961, Indian Income-tax Act, 1922
Sections 280, 54